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Simultaneous Evolution of Learning Rules and Strategies

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  • Kirchkamp, Oliver

    ()
    (Sonderforschungsbereich 504)

Abstract

We study a model of local evolution. Agents are located on a network and interact strategically with their neighbours. Strategies are chosen with the help of learning rules that are based on the success of strategies observed in the neighbourhood. The standard literature on local evolution assumes learning rules to be exogenous and fixed. In this paper we consider a specific evolutionary dynamics that determines learning rules endogenously. We find with the help of simulations that in the long run learning rules behave rather deterministically but are asymmetric in the sense that while learning they put more weight on the learning players' experience than on the observed players' one. Nevertheless stage game behaviour under these learning rules is similar to behaviour with symmetric learning rules.

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Paper provided by Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim in its series Sonderforschungsbereich 504 Publications with number 98-46.

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Length: 34 pages
Date of creation: 15 Jun 1996
Date of revision:
Handle: RePEc:xrs:sfbmaa:98-46

Note: I am grateful for financial support from the Deutsche Forschungsgemeinschaft through SFB 303 and SFB 504. Parts of this paper were written at the European University Institute (EUI), Florence. I am very grateful for the hospitality and the support that I received from the EUI. I thank Georg N\
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References

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  1. Kirchkamp, Oliver, 2000. "Spatial evolution of automata in the prisoners' dilemma," Journal of Economic Behavior & Organization, Elsevier, vol. 43(2), pages 239-262, October.
  2. Eshel, I. & Samuelson, L. & Shaked, A., 1996. "Altruists, Egoists and Hooligans in a Local Interaction Model," Working papers 9612r, Wisconsin Madison - Social Systems.
  3. Ellison, Glenn, 1993. "Learning, Local Interaction, and Coordination," Econometrica, Econometric Society, vol. 61(5), pages 1047-71, September.
  4. Ken Binmore & Larry Samuelson, 1994. "Muddling Through:Noisy Equilibrium Selection," Game Theory and Information 9403005, EconWPA, revised 29 Mar 1994.
  5. K. Schlag, 2010. "Why Imitate, and if so, How? Exploring a Model of Social Evolution," Levine's Working Paper Archive 454, David K. Levine.
  6. Eshel, Ilan & Samuelson, Larry & Shaked, Avner, 1998. "Altruists, Egoists, and Hooligans in a Local Interaction Model," American Economic Review, American Economic Association, vol. 88(1), pages 157-79, March.
  7. Schlag,Karl, . "Dynamic stability in the repeated prisoners dilemma," Discussion Paper Serie B 243, University of Bonn, Germany.
  8. Schlag, Karl H., 1998. "Why Imitate, and If So, How?, : A Boundedly Rational Approach to Multi-armed Bandits," Journal of Economic Theory, Elsevier, vol. 78(1), pages 130-156, January.
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Cited by:
  1. Kirchkamp, Oliver & Nagel, Rosemarie, 2003. "No imitation - on local and group interaction, learning and reciprocity in prisoners\," Sonderforschungsbereich 504 Publications 03-04, Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim.
  2. Jurjen Kamphorst & Gerard van der Laan, 2006. "Learning in a Local Interaction Hawk-Dove Game," Tinbergen Institute Discussion Papers 06-034/1, Tinbergen Institute.
  3. Jurjen Kamphorst & Gerard van der Laan, 2006. "Learning in a Local Interaction Hawk-Dove Game," Tinbergen Institute Discussion Papers 06-034/1, Tinbergen Institute.
  4. Juan Montoro-Pons & Francisco Garcia-Sobrecases, 2003. "A Computational Approach to the Collective Action Problem: Assessment of Alternative Learning Rules," Computational Economics, Society for Computational Economics, vol. 21(1), pages 137-151, February.
  5. Juan D. Montoro-Pons, 2000. "Collective Action, Free Riding And Evolution," Computing in Economics and Finance 2000 279, Society for Computational Economics.
  6. Kirchkamp, Oliver & Nagel, Rosemarie, 2007. "Naive learning and cooperation in network experiments," Games and Economic Behavior, Elsevier, vol. 58(2), pages 269-292, February.
  7. Waltman, L. & van Eck, N.J.P. & Dekker, R. & Kaymak, U., 2011. "An evolutionary model of price competition among spatially distributed firms," Econometric Institute Research Papers EI 2011-09, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.

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